Keystone Realtors reported a 42% year-on-year drop in pre-sales for the June quarter, primarily due to a lack of new project launches. Despite this, cash collections rose 4% to ₹599 crore, supported by ongoing project sales. The company remains focused on its Mumbai pipeline to meet annual guidance.
Keystone Realtors Ltd., the developer behind the Rustomjee brand, faced a challenging start to FY27 as its pre-sales declined by 42% to ₹617 crore in the June quarter. This is a significant drop compared to the ₹1,068 crore reported during the same period in the previous financial year. The company attributed this contraction largely to a quiet launch calendar, as no major new projects were introduced during these three months.
Impact on Sales Volume
Beyond the headline drop in sales value, the total area sold by the company also saw a sharp decline. Keystone Realtors reported that it sold 0.32 million square feet of space during the quarter, marking a 49% reduction compared to the previous year. This volume contraction highlights the importance of new project launches in driving quarterly performance for real estate players, who often rely on fresh inventory to sustain booking momentum.
Cash Flow and Project Additions
While new bookings slowed, the company’s cash collection remained stable. Collections rose by 4% to ₹599 crore, a positive sign for the developer’s liquidity. This inflow was driven by payments from previously sold units and continued demand for its existing project portfolio. Maintaining a steady flow of cash is vital for real estate companies, as it helps manage debt and fund ongoing construction without over-relying on fresh borrowings.
To drive future growth, the company added two projects to its portfolio during the quarter. These include a redevelopment project, Utkarsh CHSL in Goregaon East, and a plotted development in Igatpuri. These additions account for a combined saleable area of 1.98 million square feet and an estimated gross development value of ₹713 crore. Additionally, the firm successfully completed the Rustomjee Ashiana project in Juhu.
Investor Monitorables
For investors, the immediate focus will be on the company’s ability to ramp up launches in the Mumbai Metropolitan Region (MMR). Management has expressed confidence in meeting its annual pre-sales guidance, citing a robust pipeline of upcoming projects. The success of these planned launches, alongside the company’s ability to maintain healthy cash collections, will be the key indicators to track in the coming quarters. Investors may also monitor how these new projects impact the company’s debt levels and its broader execution timeline in the competitive MMR real estate market.